From left; Rep. William Tong, D-147, talks with his daughters Penelope, 5, and Eleanor, 7, during a joint session of the legislature at the Capitol in Hartford, Conn. on Thursday, February 6, 2014.
Photo: Brian A. Pounds

Sen. John McKinney, R-28, of Fairfield, bows his head in prayer during a meeting of a joint session of the legislature at the Capitol in Hartford, Conn. on Thursday, February 6, 2014.
Photo: Brian A. Pounds

Sen. John McKinney, R-28, of Fairfield, left, chats with Rep. Livvy Floren, R-149, of Greenwich, during a meeting of a joint session of the legislature at the Capitol in Hartford, Conn. on Thursday, February 6, 2014.
Photo: Brian A. Pounds

Sen. John McKinney, R-28, of Fairfield, left, chats with Rep. Livvy Floren, R-149, of Greenwich, during a meeting of a joint session of the legislature at the Capitol in Hartford, Conn. on Thursday, February 6, 2014.
Photo: Brian A. Pounds

Rep. William Tong, D-147, Stamford, Denise Merrill Connecticut Secretary of State and former House Speaker Moira Lyons at the Capitol in Hartford, Conn. on Thursday, February 6, 2014.
Photo: Brian A. Pounds

HARTFORD -- Gov. Dannel P. Malloy's midterm budget adjustments on Thursday came with a history lesson.

He reminded lawmakers that back in 2009 -- two years before he took office -- the General Assembly borrowed a billion dollars for operating expenses, emptied the state's $1.4 billion emergency reserves and deferred $300 million in pension and other payments over future years.

"In one fell swoop, the state of Connecticut undertook the largest deficit financing in its history, used its entire savings and refused to pay its pension obligations," Malloy said in kicking off the 13-week legislative session.

"Today, after a lot of tough decisions and strong leadership from many people in this chamber, we've come a long way," he said. "Together, we've turned a $3.6 billion deficit into a $500 million surplus."

Here are some of the points Malloy made:

Hails accomplishments

40,000 new private sector jobs have been created.

The unemployment rate of 9.4 percent has fallen to 7.4 percent.

Home values are rising.

Crime rates have fallen to a 46-year low.

Connecticut ranks among the top five states nationally in energy efficiency, worker productivity, number of residents with advanced degrees, production efficiency and health of residents.

Municipal aid

The governor wants the Legislature to:

Allow towns and cities to postpone property revaluations for two years.

Approve an $8 million increase in payments to towns and cities that host tax-exempt colleges and hospitals.

Provide $10 million for advanced school security measures.

Increase local funding for education by $40 million.

Investing the $505 million surplus

The governor proposes:

$155 million in refunds for gasoline and sales taxes, giving joint tax filers checks for $110 and singles $55.

Plowing $250 million into the state's emergency reserves.

Putting 100 million into debt reduction.

Exempting a portion of pension income for retired teachers totaling nearly $47 million over the next two years.

Exempting non-prescription drugs from the sales tax, worth nearly $34 million over two years.

Housing assistance for elderly, mental health facilities

The governor asked lawmakers to approve:

$2.2 million for 110 new units of supportive housing, as part of a mental health initiative.

$6.5 million for elderly and disabled renter's tax relief.

$300,000 for support services for veterans in a Newington housing complex.

"Connecticut must move forward, because the people of our state have sacrificed and now they deserve to share in our emerging recovery," Malloy said. "We know that none of our progress will come without setbacks; none of it will be perfect in execution. The question before us is: How should we define ourselves, by our setbacks or by our successes?"

The $19 billion budget-adjustment proposal for the second year of the biennial budget that takes effect on July 1, would include an overall 2.7 percent spending increase. The $19 billion bottom line does not include $3 billion in federal Medicaid funding that was removed last year from the overall two-year, $43.8 billion budget.

The Legislature's opening day was delayed 24 hours by the Wednesday snow and ice storm. The session adjourns at 12:01 a.m. on May 8.